Cincinnati Is Battlefield for Wal-Mart and Kroger
Cincinnati, Although it’s an unlikely turf for any battle of the titans, Cincinnati has emerged as a major battlefield for one giant—Wal-Mart—and one near-giant, Kroger.
Wal-Mart is marching on Greater Cincinnati with 17 massive supercenters in various stages of development, either open, under construction or in the planning stages. The full-size general merchandise stores containing a full-size supermarket are roughly double the size of a traditional Wal-Mart and can have the same impact on shopping patterns as a regional mall, said Howard Davidowitz of New York City-based retail consultancy Davidowitz & Associates.
As of last summer, Wal-Mart had just two supercenters in the region.
Not to be outdone, Cincinnati-based Kroger Co. has announced plans to protect its home base. Over the past year, the company held off Wal-Mart and other competitors and continued to increase its market share to 58.1%. When Wal-Mart opened a supercenter in Fort Wright, Kroger relocated two stores into redesigned flagship groceries.
Despite Kroger’s show of strength, Wal-Mart’s market share is expected to gain significant ground.
Harris Teeter Sales Increase
Charlotte, N.C., Ruddick Corp. reported that for the third quarter ended July 3, Harris Teeter sales rose 6.1% to $663.3 million from $625.3 million in the comparable 2004 period. For the 39 weeks ended July 3, 2005, sales rose 4.9% to $1.97 billion from $1.88 billion in the same period of fiscal 2004. The increase in sales was attributable to new store activity and comparable-store-sales increases that were 2.89% for the quarter and 3.32% for the 39-week period.
Report: Wal-Mart Seeks Brazilian Stores
Sao Paulo, Brazil, Wal-Mart Stores is close to buying the Portuguese Sonae’s retail chain in Brazil, according to a report from Sao Paulo-based consulting firm Gouvea de Souza. Sonae operates about 150 supermarkets and hypermarkets in the southern region of the country. Wal-Mart offered 800 million euros for the chain, according to local reports.